Under the Equity Method the Stock Investments Account Is Credited

question 9

Multiple Choice

Under the equity method the Stock Investments account is credited when the

• A) investee reports net income.
• B) investee reports a net loss.
• C) investment is originally acquired.
• D) investee reports net income and when the investment is originally acquired.

Know the proper accounting for goods out on consignment and goods in transit.

Identify the categories of inventory for a manufacturing business.

Comprehend the accounting principle of conservatism as it applies to inventory.

Understand the conditions under which different inventory costing methods can be used concurrently.

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Definitions:

Continental Drift

The hypothesis, now a scientific theory, that the Earth's continents have moved over geological time relative to each other, appearing to have "drifted" across the ocean bed.

Glacial Evidence

Glacial evidence comprises physical features left on the landscape that indicate the past presence and movement of glaciers, such as striations, moraines, and glacial erratics.

Wegener's Hypothesis

The theory proposed by Alfred Wegener suggesting that continents drift across the Earth's surface through geological time, which later became known as continental drift.

Continental Drift

The theory that the continents have moved across the Earth’s surface over geological time, proposed by Alfred Wegener.